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In The 2013 Fiscal Year, Hospitals Paid $26.3 Million More Than They Received Back.

State Rejects Challenge to the Hospital Tax By Ana Radelat


wo state agency heads have ruled against Connecticut hospitals’ claims that the state tax on hospitals is illegal, clearing the way for the industry to take the state to court. Hospitals have long bristled at the tax, imposed during a budget crisis in 2011 and increased by hundreds of millions of dollars since then. Last year, 24 hospitals and the Connecticut Hospital Association challenged the tax, seeking declaratory rulings on its legality from the departments of social services and revenue services. Recently, Social Services Commissioner Roderick L. Bremby and Revenue Services Commissioner Kevin B. Sullivan issued a 179-page ruling rejecting the hospitals’ arguments that the tax violated the Connecticut and U.S. constitutions, as well as state statute. The hospital association called the ruling “unfortunate but not unexpected,” and said it and the hospitals “intend to pursue every legal option at our disposal as we continue our efforts to challenge the tax.”

slated to receive $117.6 million as part of the tax – a net tax of $448.5 million. “The hospital tax, which now totals a staggering $556 million a year and is nearly 30 times what any other organization pays, is bad public policy,” the hospital association said in a statement. In the first year the tax was imposed, fiscal year 2012, hospitals paid $349.1 million and received $399.5 million back – a net gain for the industry. But since then, the state has reduced what hospitals get back (which also reduces the amount of federal funding the move generates, since the federal government only matches the money paid to hospitals). More recently, the state has also increased the amount collected. In the 2013 fiscal year, hospitals paid $26.3 million more than they received back. This fiscal year, the tax on hospitals is expected to total $566.1 million, although the amount the state expects to collect is lower because hospitals use tax credits to reduce their payments. Hospitals are

“The Malloy administration has argued that hospitals have benefited from a significant growth in Medicaid spending since the implementation of the federal health law, although hospitals say that, since Medicaid pays less than it costs to care for patients, treating more Medicaid patients doesn’t help their bottom lines. The administration also has pointed to hospital executive pay and the industry’s overall profitability in defending the tax, while critics say focusing on total industry performance obscures the fact that many hospitals have struggled financially. Edited version, full version available at Reprinted with permission from

Cara Starts Phase IIb Trial Pain Drug Stamford based Cara Therapeutics, Inc. (Nasdaq:CARA), began enrolling patients for a Phase 2b trial. The trial is an oral tablet formulation of its “peripherally selective kappa opioid agonist, CR845,” for the treatment of pain associated with osteoarthritis (OA). The Company expects to report top-line data from this trial during the first half of 2017. “The initiation of this osteoarthritis trial is an important step in establishing the potential clinical utility of CR845 in the treatment of chronic inflammatory pain,” said Joseph Stauffer, D.O., M.B.A., Chief Medical Officer of Cara Therapeutics. “The biggest challenge in analgesic development today centers on providing effective medications that lack the abuse burden of traditional pain drugs, and it appears from our previous preclinical and human abuse liability data that CR845 could represent a novel, non-addicting approach to the treatment of chronic pain.” 20

Primary Care Network Opens In New Haven


r. Lorenzo Galante and Dr. Sanjay K. Aggarwal of New Haven, have joined Healthcare2U of Austin, Texas’ Private Physician Network (PPN) medical care, wellness and chronic disease management. The New Haven location Galante is Healthcare2U’s first location in the Northeast, the company has 60 locations in Texas and Oklahoma.

make sure employees can see a physician when they need one. As Healthcare2U continues to grow, we will continue to look for ways to break down old models to redefine how healthcare is delivered by improving the consumer experience while controlling costs.” The company says it works with healthcare brokers and businesses “to provide a comprehensive suite of customized group health plans to deliver direct primary care.”

Through the New Haven clinic, Healthcare2U members will be able to access primary care, wellness coaching “One of the biggest and chronic disease challenges in management. In Aggarwal healthcare today addition to a network of is convenient and 60 affiliated clinics, the affordable access to quality company says Healthcare2U medical care,” said Andy delivers primary care through Bonner, president and CEO dedicated on-site employer of Healthcare2U. “We look based clinics and employer forward to working with shared clinics. Connecticut businesses to

Charlotte Hungerford In Pilot To Track Disease


cloud technology project that tracks a patient’s whole body statistics is being piloted at two facilities nationally, including Charlotte Hungerford Hospital in Torrington. BIO is a cloud-based software collects details about nutrition, wellness and medical conditions and matches the individual’s details up against “existing medical knowledge, expert opinions and diagnostics” as well as a network of physicians, dietitians, life coaches and communities. BIO Wellness Inc., claims its program will “use an individual’s whole body information and the world’s ever-growing body of nutrition, medical and lifestyle information to generate recommendations that enable the delivery of low cost precision medical intervention to manage and treat chronic illness and reduce risk.” Additionally, the software “tracks and analyzes all implemented recommendations and results to provide true accountability.” The program’s other facility is Kalispell Regional Medical Center in Montana and together with CHH they are set to track a group of patients and their cardiovascular health to show how symptoms of cardiovascular disease can be reduced. The pilots in each facility are set to begin in September and last approximately 6 months. | Business New Haven

Business New Haven September October 2016  
Business New Haven September October 2016